Carlisle US Tyre Consolidation Plans ‘On Track’
Carlisle Companies Incorporated reported net sales from continuing operations of US$709.4 million for the quarter ended June 30, 2010, an 11 per cent increase from the second quarter of 2009. Income from continuing operations decreased 32 per cent to $38.9 million, or $0.62 per diluted share, and net income was $38.6 million, compared to net income of $55.5 million for the second quarter 2009.
“During the second quarter, our organic revenue increased by 8.6 per cent and, despite the impact of rising raw material costs, we were able to achieve 9.0 per cent EBIT,” said David A. Roberts, chairman, president and CEO. “Our EBIT performance in the Engineered Transportation Solutions segment was lower during the second quarter primarily due to the impact from a $24.5 million insurance gain recorded in the second quarter of last year. In addition, we continue to face significant increases in raw material costs within this segment and continue to address production inefficiencies related to the consolidation of our Buji and Meizhou, China tyre plants which we expect to resolve in the third quarter. The consolidation of the US tyre operations into the Jackson, Tennessee plant by the end of 2010 remains on track. These consolidation activities and the continued integration of the tyre and wheel, power transmission, and industrial brake and friction product lines are expected to drive improvements in EBIT margin in 2011.”